All Forum Posts by: Kesru Tam

I'm looking for near full-service agents who can help find, upgrade and property manage a place.

I came across Spartan Invest -- but who is is out there?

Are there any providers who do it for multi-family homes?

I'm new to RE and I'm interested to buy property for long-term hold & keep with cash-flow in mind.

The issue is I don't have time nor expertise to analyze properties across the country and determine which can cash-flow.

I don't mind compensating an experienced manager to do this work + help manage the property. We could figure out a % rent and/or equity stake in the property

Do such services exist? Where can I find them?

(I've considered syndication, but will pass for now)

There are a few posts in the past where members have obtained low rates (LIBOR + spread) on their paper assets (stocks + bonds).

This can be very attractive since the interest rates come to ~2.5%. You can then ride both the gains from the stock market AND have the upside of having substantial RE portfolio.

The one issue with this is the bank can 'call' the loan at the worst time -- during times of financial distress, stock market crashes, credit line freezes, etc. This can be disastrous since it can wipe someone out completely.

 Interactive Brokers offers a 2.2% loan, but the call happens automatically

Has anyone managed to secure a line of credit WITHOUT it being callable? At the minimum, it'll help to have a 30/60 day 'cure' period.

Which banks provide this type of credit?

Team - 
I'm both new to this forum and relatively new to RE. I'd love to get your POV on my situation

Circumstance

I'm an early employee at a (now) large tech and have 8-figure NW in stocks & bonds. I don't have much (< 2%) in RE currently. 

I'm not making use of the low-interest rates available to build a RE portfolio.

In addition to liquid assets, I draw a highish salary and can potentially get access to high credit lines with low interest rates. I'm also open to pledging my liquid assets to access more credit (non-callable).

I'm okay with some rental unit managemnt work, but don't want to do it as a full-time job.

Ideal situation

The portfolio is

- Diversified into RE

- Uses safe leverage and low interest rates to maximize returns

- Provides cashflow to cover the interest payments / expenses

- Increases overall return vs. only stocks, bonds

- Uses my credit line fully (in a safe way). Credit line from (a) Salary (b) Credit score (c) Liquid assets

Question #1: Establishing a credit line on liquid assets

How do I use my liquid assets to establish a credit line? I've read that you can borrow against 50%+ of your assets at LIBOR + Spread; Interactive Brokers allows for this but it's a margin line that can be called (at the worst time)

How do you go about pledging assets to get a non-callable credit line for RE? Presumably, the lender can take both the RE + liquid assets as collateral.

Which banks offer that?

Question #2: Direct RE (+ manager) vs. Partnership vs. Syndicate vs. Crowd Funding

I've read a bit about the different ways of accessing RE. I want to play this game for the long-term and not looking for short-term returns.

My portfolio should benefit from appreciation, depreciation, tax-free cashing-out, leverage using low interest rates (from #1), cashflow to cover the expenses.

Syndicate & CF seem to be ruled out since I can't control the asset, cannot leverage it when I want to and there's no collateral on my investment.

What is a good way to start? Are there brokers who help find + manage rental properties under your title (w/ their commission)?

Thanks!